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Stereotaxis Reports 2022 Third Quarter Financial Results

Stereotaxis, Inc.
Stereotaxis, Inc.

ST. LOUIS, Nov. 10, 2022 (GLOBE NEWSWIRE) -- Stereotaxis (NYSE: STXS), a pioneer and global leader in surgical robotics for minimally invasive endovascular intervention, today reported financial results for the third quarter ended September 30, 2022.

“Stereotaxis continues to demonstrate robust commercial and technological progress,” said David Fischel, Chairman and CEO. “We received two system orders in the third quarter, and have already received two additional signed purchase contracts as we start the fourth quarter, reflecting continued global demand for our robotic technology. Our growing system backlog of over $13 million, along with a healthy capital pipeline, sets us up well for the coming year.”

“Alongside this commercial execution, we are making significant progress on a robust innovation strategy. The CE Mark submission of the MAGiC ablation catheter successfully passed a completeness check by the notified body and is in the midst of its technical review. Development of the accessible next generation robotic system is progressing well and remains on track for an initial launch next summer. Our collaboration with MicroPort is advancing rapidly on multiple fronts and we expect near-term regulatory submission of the Genesis system in China.”

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“This progress brings us closer to a future when the benefits of robotic magnetic navigation are broadly accessible, available with a vibrant ecosystem in electrophysiology, and impactful across multiple endovascular indications. We are cognizant of the importance of financial prudence and remain confident in the ability to advance our strategy, generate organic growth, and reach profitability with our current financial resources.”

2022 Third Quarter Financial Results
Revenue for the third quarter of 2022 totaled $7.7 million, compared to $9.1 million in the prior year third quarter. Recurring revenue for the third quarter was $5.3 million and system revenue was $2.4 million. The decrease in revenue is primarily driven by reduced system revenue, as hospital construction delays continue to slow the conversion of order backlog into revenue.

Gross margin for the third quarter of 2022 was 60% of revenue, with recurring revenue gross margin of 80% and system gross margin of 16%. Operating expenses in the quarter of $9.6 million include $2.7 million in non-cash stock compensation expense. Excluding stock compensation expense, adjusted operating expenses were $6.9 million compared to $6.8 million in the prior year third quarter and down from $7.2 million sequentially from the current year second quarter.

Operating loss and net loss for the third quarter of 2022 were ($5.1) million and ($4.9) million, respectively, compared to ($4.6) million for both in the previous year. Adjusted operating loss and adjusted net loss, excluding non-cash stock compensation expense were ($2.4) million and ($2.2) million for the quarter. Negative free cash flow for the third quarter was ($2.7) million. Negative cash flow this year so far has been significantly impacted by over $2 million spent on one-time expenses for our new headquarters and manufacturing facility as well as an over $3 million increase in inventory.

Cash Balance and Liquidity
At September 30, 2022, Stereotaxis had cash and cash equivalents, including restricted cash, of $32.4 million and no debt.

Forward Looking Expectations
While system revenue in any given quarter remains difficult to predict, growing system backlog of over $13 million, along with a healthy capital pipeline support an expectation of year-over-year revenue growth over the coming quarters. Substantial revenue growth in the coming years is expected to be supported by new technology launches and an enhanced commercial organization. Stereotaxis’ robust balance sheet allows it to reach profitability without the need for additional financings.

Conference Call and Webcast
Stereotaxis will host a conference call and webcast today, November 10, 2022, at 10:00 a.m. Eastern Time. To access the conference call, dial 1-800-715-9871 (US and Canada) or 1-646-307-1963 (International) and give the participant pass code 5729833. Participants are asked to call 5-10 minutes prior to the start time. To access the live and replay webcast, please visit the investor relations section of the Stereotaxis website at www.Stereotaxis.com.

About Stereotaxis
Stereotaxis (NYSE: STXS) is a pioneer and global leader in innovative surgical robotics for minimally invasive endovascular intervention. Its mission is the discovery, development and delivery of robotic systems, instruments, and information solutions for the interventional laboratory. These innovations help physicians provide unsurpassed patient care with robotic precision and safety, expand access to minimally invasive therapy, and enhance the productivity, connectivity, and intelligence in the operating room. Stereotaxis technology has been used to treat over 100,000 patients across the United States, Europe, Asia, and elsewhere. For more information, please visit www.Stereotaxis.com.

This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe”, "estimate”, "project”, "expect" or similar expressions. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially. Factors that would cause or contribute to such differences include, but are not limited to, the Company's ability to manage expenses at sustainable levels, acceptance of the Company's products in the marketplace, the effect of global economic conditions on the ability and willingness of customers to purchase its technology, competitive factors, changes resulting from healthcare policy, dependence upon third-party vendors, timing of regulatory approvals, the impact of pandemics or other disasters, and other risks discussed in the Company's periodic and other filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release. There can be no assurance that the Company will recognize revenue related to its purchase orders and other commitments because some of these purchase orders and other commitments are subject to contingencies that are outside of the Company's control and may be revised, modified, delayed, or canceled.

Investor Contacts:

Media Contact:

David L. Fischel

Bethanne Schluter

Chairman and Chief Executive Officer

Director, Marketing & Communications

 

 

Kimberly Peery

 

Chief Financial Officer

 

 

 

314-678-6100

 

Investors@Stereotaxis.com

 


STEREOTAXIS, INC.

STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

 

 

 

 

 

(in thousands, except share and per share amounts)

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

Systems

$

2,413

 

 

$

3,541

 

 

$

4,649

 

 

$

8,829

 

Disposables, service and accessories

 

5,244

 

 

 

5,319

 

 

 

16,197

 

 

 

17,211

 

Sublease

 

-

 

 

 

246

 

 

 

-

 

 

 

740

 

Total revenue

 

7,657

 

 

 

9,106

 

 

 

20,846

 

 

 

26,780

 

 

 

 

 

 

 

 

 

Cost of revenue:

 

 

 

 

 

 

 

Systems

 

2,016

 

 

 

3,375

 

 

 

3,817

 

 

 

6,200

 

Disposables, service and accessories

 

1,074

 

 

 

751

 

 

 

2,868

 

 

 

2,558

 

Sublease

 

-

 

 

 

246

 

 

 

-

 

 

 

740

 

Total cost of revenue

 

3,090

 

 

 

4,372

 

 

 

6,685

 

 

 

9,498

 

 

 

 

 

 

 

 

 

Gross margin

 

4,567

 

 

 

4,734

 

 

 

14,161

 

 

 

17,282

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

 

2,818

 

 

 

2,500

 

 

 

8,158

 

 

 

7,584

 

Sales and marketing

 

3,111

 

 

 

2,910

 

 

 

9,337

 

 

 

8,902

 

General and administrative

 

3,690

 

 

 

3,944

 

 

 

10,986

 

 

 

10,335

 

Total operating expenses

 

9,619

 

 

 

9,354

 

 

 

28,481

 

 

 

26,821

 

Operating loss

 

(5,052

)

 

 

(4,620

)

 

 

(14,320

)

 

 

(9,539

)

 

 

 

 

 

 

 

 

Interest income (expense), net

 

135

 

 

 

1

 

 

 

182

 

 

 

(5

)

Gain on extinguishment of debt

 

-

 

 

 

-

 

 

 

-

 

 

 

2,183

 

Net loss

$

(4,917

)

 

$

(4,619

)

 

$

(14,138

)

 

$

(7,361

)

Cumulative dividend on convertible preferred stock

 

(339

)

 

 

(338

)

 

 

(1,005

)

 

 

(1,007

)

Net loss attributable to common stockholders

$

(5,256

)

 

$

(4,957

)

 

$

(15,143

)

 

$

(8,368

)

 

 

 

 

 

 

 

 

Net loss per share attributed to common stockholders:

 

 

 

 

 

 

 

Basic

$

(0.07

)

 

$

(0.07

)

 

$

(0.20

)

 

$

(0.11

)

 

 

 

 

 

 

 

 

Diluted

$

(0.07

)

 

$

(0.07

)

 

$

(0.20

)

 

$

(0.11

)

 

 

 

 

 

 

 

 

Weighted average number of common shares and equivalents:

 

 

 

 

 

 

 

Basic

 

76,100,007

 

 

 

75,700,389

 

 

 

75,977,920

 

 

 

75,476,381

 

 

 

 

 

 

 

 

 

Diluted

 

76,100,007

 

 

 

75,700,389

 

 

 

75,977,920

 

 

 

75,476,381

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


STEREOTAXIS, INC.

BALANCE SHEETS

 

 

(in thousands, except share amounts)

September 30,
2022

 

December 31,
2021

 

(Unaudited)

 

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

30,938

 

 

$

38,739

 

Restricted cash - current

 

618

 

 

 

454

 

Accounts receivable, net of allowance of $227 and $180 at 2022 and 2021, respectively

 

5,077

 

 

 

5,406

 

Inventories, net

 

8,161

 

 

 

4,433

 

Prepaid expenses and other current assets

 

1,285

 

 

 

2,356

 

Total current assets

 

46,079

 

 

 

51,388

 

Property and equipment, net

 

3,409

 

 

 

2,632

 

Restricted cash

 

875

 

 

 

952

 

Operating lease right-of-use assets

 

5,479

 

 

 

5,735

 

Prepaid and other non-current assets

 

233

 

 

 

278

 

Total assets

$

56,075

 

 

$

60,985

 

 

 

 

 

Liabilities and stockholders' equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

3,941

 

 

$

4,189

 

Accrued liabilities

 

3,211

 

 

 

2,528

 

Deferred revenue

 

8,043

 

 

 

6,277

 

Current portion of operating lease liabilities

 

359

 

 

 

268

 

Total current liabilities

 

15,554

 

 

 

13,262

 

Long-term deferred revenue

 

1,416

 

 

 

2,238

 

Operating lease liabilities

 

5,586

 

 

 

5,842

 

Other liabilities

 

168

 

 

 

219

 

Total liabilities

 

22,724

 

 

 

21,561

 

 

 

 

 

Series A - Convertible preferred stock:

 

 

 

Convertible preferred stock, Series A, par value $0.001; 22,386 and 22,387 shares outstanding at 2022 and 2021, respectively

 

5,584

 

 

 

5,584

 

Stockholders' equity:

 

 

 

Convertible preferred stock, Series B, par value $0.001; 10,000,000 shares authorized, 5,610,121 shares outstanding at 2022 and 2021

 

6

 

 

 

6

 

Common stock, par value $0.001; 300,000,000 shares authorized, 74,832,278 and 74,618,240 shares issued at 2022 and 2021, respectively

 

75

 

 

 

75

 

Additional paid-in capital

 

540,706

 

 

 

532,641

 

Treasury stock, 4,015 shares at 2022 and 2021

 

(206

)

 

 

(206

)

Accumulated deficit

 

(512,814

)

 

 

(498,676

)

Total stockholders' equity

 

27,767

 

 

 

33,840

 

Total liabilities and stockholders' equity

$

56,075

 

 

$

60,985